Media Corp Archives – We're Fusible

Perhaps the biggest domain name sale of 2011, Media Corp’s gambling.com, is getting ready to make headlines.

Just hours ago, Media Corp announced its final results for the year ended 2010 through a press release.

While the company showed a better overall performance for its business than the previous year, and gross profit increased by 456%, what’s on the minds of many in the domain name and gaming industries, is what’s going on with the auction of gambling.com?

According to the press release, here’s what Media Corp had to say about gambling.com.

2010 Business highlights– Removal of the Gambling.com Google penalty, Re-launch of Gambling.com website
Online Publishing–The business of the publishing division has continued to be challenging during the year. As announced post year end we are undertaking an auction for the sale of Gambling.com. There have been a number of bidders and the Directors anticipate the auction process to be nearing completion at which point an announcement will be made. The Board is also considering the sale of other underperforming publishing assets and this review will continue through 2011.
Current trading and prospects– The Directors are hopeful of a successful conclusion to the auction process for gambling.com which should strengthen the cash position and balance sheet of the Company and provide capital for further expansions.

Gambling.com, the auction process

Though it’s not 100% official, the sale of gambling.com will almost certainly be more than a pure domain sale. A website has been established on the domain since 1997. Gambling.com has even sold before in 2005, when Sedo brokered the blockbuster deal for $20MM.

Media Corp put the domain gambling.com up for sale in November 2010, as it says, to fund acquisition opportunities following approaches from a number of online gaming companies. In hopes of getting the best sales outcome, the company appointed Sedo, the World’s leading domain marketplace, to handle the sale.

Media Corp announced its first quarter 2011 results at the end of January, and indicated that a sale for gambling.com would complete during the second quarter of the financial year (which, it didn’t).

However, expect a lot more news on an impending blockbuster deal in the very near future.

One potential buyer, who had been rumored to be interested, is billionaire Calvin Ayre who acquired the domain name slots.com in 2010 for $5.5.

There’s been a number of headlines this past month about internet gambling and gambling domains. Here’s a roundup of news and gossip from around the web, with stories ranging from the New Jersey Internet Gambling Bill and ongoing negotiations for the sale of gambling.com, to 2011 domain sales and predictions.

New Jersey Internet Gambling

I wrote earlier in the week how The New York Post was predicting New Jersey Governor Christie would veto the state’s Internet Gambling Bill. Though it was thought Gov. Christie had until Feb. 24 to sign the bill, veto the bill, or veto the bill with conditions, otherwise it would become law if no action was taken – it appears he has longer.

According to PokerNews, “Christie has decided that he actually has until March 3 to make the decision. The governor’s office claims a legislative recess in New Jersey gives him the extra time, according to Interactive Media Entertainment and Gaming Association chairman Joe Brennan Jr.”

Another issue that was brought to light in the PokerNews article, is that the NY Post story that claimed the Governor might veto the bill, appears to be false. PokerNews quotes Brennan: “I’ve heard people say they heard the governor is going to veto the bill,” Brennan said. “Our people are as close to the governor as anybody and they don’t know what he’s going to do because the governor hasn’t indicated to any party of this what he’s going to do. Anyone saying they know, they’re not involved in anything but rumors and prognostication.”

And while New Jersey could be the first state to legalize internet gambling, California could follow shortly thereafter. Steven Stradbrooke of CalvinAyre.com has more on California legislation.

Gambling Domains 2011 Sales

The gambling domain industry had a fantastic year in 2010 in which two gambling domains sold for seven-figures: slots.com for $5.5 million and Poker.org for $1 million. While 2011 is just getting started, Sedo Broker Ryan J. Colby who recently brokered the top-selling domain name in 2011 so far to date with Gamesforgirls.com for $500,000, has predicted this year will be one of the best on record.

“I’m making an early prediction that 2011 will see the highest number of seven figure domain name sales on record”, Ryan tweeted last week.

Though there haven’t been many big gambling domain sales in 2011 to date, OnlineCasinos.ca sold for $28,000 earlier this month. And there’s a good shot Ryan’s prediction will become true, with gambling domain names like tournament.com and gambling.com on the market. The sale of gambling.com is being brokered by Sedo, which brings me to my next headline.

The Sale of Gambling.com will complete during the Second Quarter

Speculation grew that billionaire Calvin Ayre might purchase gambling.com to add to his growing Bodog empire. A story that appeared on BlackJack Champ even speculated he would own the name by the end of January. Well, Media Corp Plc still owns the domain according to registrant records, but the company’s 2011 first quarter trading highlights published last month shed some light on what’s going on with gambling.com.

“Strong year on year growth has continued at Purple Lounge Limited, the Group’s online poker and casino business and at Eyeconomy, the Group’s wholly owned advertising network. In addition the Group is in ongoing negotiations with a number of parties for the sale of gambling.com. It is anticipated that the sale should complete during the second quarter of the financial year.”

Kentucky internet domain name case dragging on

There haven’t been many new developments in the Kentucky domain name case that has dragged on for years. In January, lawyers representing both sides of the case filed briefs in Franklin County Circuit Court, in Frankfurt, KY, iMEGA reported.

“Lawyers representing iMEGA asserted the association’s right to contest the Commonwealth’s attempts to seize their members’ Web site addresses, while Kentucky’s lawyers ignored previous court rulings on standing, insisting that iMEGA and other trade associations lacked the right to appear.”

As iMEGA points out, “The matter now lies in the hands of Franklin County circuit court Judge Thomas Wingate, who issued the original seizure orders on the behalf of Kentucky.”

Have a gambling domain rumor or story tip I should know about? Contact us or leave it in the comments.

Image Credit: (Governor Photos)